Cost Basis

Cost basis, also called acquisition cost, is the value assigned to a crypto asset when you obtain it, used later to work out the gain or loss on disposal. It generally includes the amount paid plus directly related costs such as trading fees, and for assets received as income it is often the market value at the time of receipt. Because most people buy the same coin repeatedly at different prices, tax systems specify a method for deciding which units are sold — for example first-in-first-out, or an average-cost pool. Consistent record-keeping of dates, quantities, prices and fees across every wallet and exchange is what makes the calculation possible. Accepted methods and record requirements differ by jurisdiction.